North Dakota Employment Law Update – January 2017

January 16th, 2017

Income Withholding and Reporting Due Dates

The North Dakota State Tax Commissioner’s Office has issued a corporate and personal income tax newsletter (Income Tax Newsletter, January 2017) discussing a number of topics, including the effect of federal extended due date changes. Federal legislation directed the IRS to modify the federal income tax regulations to change the maximum extension period for partnership and fiduciary income tax returns. If the federal regulation changes are made, North Dakota’s policy on recognizing federal extensions will be as follows:

For all entities other than C corporations, the state will follow the federal extended due date (this is a change from the previous practice of recognizing the number of months of the federal extension); and

For C corporations, the extended due date for North Dakota purposes will be the federal extended due date plus one month.

In addition, North Dakota follows the federal due date change for purposes of filing copies of Forms W-2 and 1099 (reporting non-employee compensation) with the Tax Commissioner’s Office. Accordingly, the 2016 North Dakota Form 307 along with copies of Form W-2, and copies of the 2016 Form 1099 (reporting non-employee compensation), must be filed by January 31, 2017. The January 31 deadline for providing copies of these forms to employees and payees remains unchanged.

Among other topics covered in the newsletter are the following:

Online access to federal Form 1099-G information;

Incorrect identification of a disregarded entity as the income recipient on Form 1099-MISC;